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COUNTRY OF INCORPORATION/NAME OF SUBSIDIARY PRINCIPAL ACTIVITIES PLACE OF BUSINESSVision Technologies Systems, Inc. Investment holding USA(formerly known as SingaporeAerospace (USA) Incorporated)#Singapore Technologies Engineering Providing marketing services to the Group USA(USA) Inc.#ACQUISITIONS AND DISPOSALSDuring the financial year, the Group acquired 100% ofthe issued share capital of Founders Industries Pte Ltdand an additional 34% equity interest in DataMarkTechnologies Pte Ltd (“DataMark”), thereby increasingthe Group’s shareholding in DataMark from 17% to10. ASSOCIATED COMPANIES AND JOINT VENTURES51%.The profit after taxation and extraordinary items ofthe acquired subsidiaries amounts to approximately$24,084,000 for the year ended 31 December 2000(1999: $11,316,000), of which $24,084,000 arose in theperiod from the respective acquisition dates to 31December 2000.Vision Technologies Aerospace Inc. Investment holding and providing investment USA(formerly known as Visionservices to the Aerospace SectorInternational Incorporated)#ST Mobile Aerospace Engineering, Repair and maintenance of aircraft USAInc.*DalFort Aerospace, L.P.* Repair and maintenance of aircraft USADalFort Aerospace GP, Inc.# Investment holding USASA Supplies (USA) Inc.# Dormant USAVision Technologies Marine Inc.# Investment holding and providing investment USAservices to the Marine SectorGROUP2000 1999$’000 $’000Unquoted shares, at cost 124,442 71,629Provision for diminution in value of investments (6,440) (2,919)Goodwill on acquisition written off (1,737) (6,317)116,265 62,393Share of post-acquisition:Profits 29,611 92,273Reserves (353) 4,962145,523 159,628Loans to associated companies – 2,000Loans to joint ventures 9,663 9,663Provision for doubtful loans (1,711) (1,896)153,475 169,395VT Systems, Inc.# Investment holding and providing investment USAservices to the GroupSingapore Technologies Dynamics Systems integration, core product design and SingaporePte Ltddevelopment of aeronautic defence systemsST Synthesis Pte Ltd Providing armament services Singapore(formerly known as SingaporeTechnologies Integrated ServicesPte Ltd)During the financial year, cost of investment in AtlantisShipyard Pte Ltd (“Atlantis”) amounting to $6 millionhas been reclassified from an associated company to along-term investment.The management is of the opinionthat the Group is no longer able to exercise significantinfluence over the financial and operating policy makingprocess in Atlantis through its representation on theBoard of Directors of Atlantis (Note 11).The share of post-acquisition losses and reserves andgoodwill of Atlantis amounting to $1.917 million hasbeen reclassified to provision for diminution in value oflong-term investment (Note 11).The loan to an associated company, Atlantis, which isinterest-free, unsecured and with no fixed terms ofrepayment has been reclassified to loans receivable(Note 12).Loans to a joint venture are interest-free, unsecured andhave no fixed terms of repayment.Vision Technologies Kinetics, Inc.# Investment holding and providing investment USAservices to Land Systems Sector* Audited by associated firms of Arthur Andersen, Singapore# Not required to be audited by the law in the country of incorporation144 • visionnotes to the financial statements • 145